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KPI of the Day – Human Resources (HRM): # Employee commitment index

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employee commitment

Definition

Measures the employee’s commitment and attachment to their work and to the organization overall.

Purpose

To evaluate the level of employees’ commitment to the organization, as an indicator of employee satisfaction with their job, company and their proud to work for their company.

Recommendations

Employee commitment is a reflection of the perception employees have regarding the organization they work for. It is different from employee engagement in the sense that it exhibits the desire of existing employees within the organization to spend their career with the organization they work for.

The # Employee commitment index is a leading indicator for turnover within the organization. It directly impacts the likelihood of employees leaving the organization for a better job opportunity, as well as, any favorable market opportunity.

According to WorkUSA 2000, employee commitment is closely related to shareholder value. The level of employee commitment to the organization is driven several factors such as employees’ trust in senior leadership and the chance to use their skills.

Several recommendations of raising employee commitment include:

  • Creating a strong reputation and employment brand;
  • Perceived leadership/management quality;
  • Clearly mapped processes and well-defined procedures.

If you are interested in more Human Resources-related KPIs, smartKPIs.com subscriptions provide access to +500 KPI examples. Our dedicated Library contains relevant resources to improve your KPI practices, and if you want to further improve your knowledge, feel free to explore our latest publication – The Human Resources KPI Dictionary.

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